INTRODUCTION TO LIFE & HEALTH INSURANCE

► ECONOMIC SECUIRTY AND THE ECONOMICS OF

LIFE AND HEALTH INSURANCE

► THE NATURE OF LIFE AND HEALTH INSURANCE

► INSURANCE DEFINED

► SOCIAL VS PRIVATE INSURANCE

► LIFE VERSUS NON LIFE INSURANCE

► LIFE AND HEALTH INSURANCE DEFINED

► TYPES OF LIFE AND HEALTH INSURANCE POLICIES

► LIFE AND HEALTH INSURANCE CLASSIFICATIONS

1. GROUP LIFE AND HEALTH INSURANCE

2. ORDINARY LIFE AND HEALTH INSURANCE
3. INDUSTRIAL LIFE AND HEALTH INSURANCE
4. CREDIT INSURANCE

► AN ECONOMIC OVERVIEW OF LIFE AND HEALTH

INSURANCE MARKETS

1. CONDITIONS FOR COMPETITIVE INSURANCE

MARKETS
2. IMPERFECTIONS IN INSURANCE MARKETS

► CATEGORIES OF INSURANCE MARKET

IMPERFECTIONS
1. MARKET POWER
2. BARRIERS TO ENTRY OR EXIT
 3. ECONOMICS OF SCLE OR SCOPE
4. PRICE DISCRIMINATION
5. PRODUCT DIFFRENTIATION

► EXTERNALITIES
1. POSITIVE
2. NEGATIVE

► INFORMATION PROBLEMS
• ASYMMETRIC INFORMATION
• LEMONS
• ADVERSE SELECTION
• MORAL HAZARD
• PRINCIPAL AGENT
• NONEXISTENT INFORMATION

► FREE RIDER PROBLEMS

► THE ECONOMIC BASIS FOR LIFE AND HEALTH

INSURANCE

► THE DEMAND FOR LIFE AND HEALTH INSURANCE

1. THE CONCEPT OF HUMAN CAPITAL
2. THE HUMAN LIFE VALUE CONCEPT
3. HUMAN LIFE VALUATION AND ETHICS
4. ECONOMIC THEORIES OF CONSUMPTION AND
INSURANCE
5. THE PRODUCTION OF LIFE AND HEALTH
INSURANCE
6. THE ROLE OF CAPITAL
7. INSURANCE PRODUCTION PROCESS
8. FINANCIAL MANAGEMENT
9. DISTRIBUTION
 LIFE AND HEALTH INSURANCE PRICING
FUNDAMENTALS

1. PRINCIPLES OF INSURANCE
2. LAW OF LARGE NUMBERS
3. NATURE OF PERILS INSURED
4. GAMBLING AND INSURANCE

PRICING INDIVIDUAL LIFE AND HEALTH INSURANCE

1. RATE ADEQUACY
2. RATE EQUITY
3. RATES NOT EXCESSIVE

LIFE AND HEALTH INSURANCE PRICING ELEMENTS

1. THE PROFITABILITY OF THE INSURED EVENT OCCURING

2. THE TIME VALUE OF MONEY
3. THE BENEFITS PROMISED
4. LOADINGS TO COVER EXPENSES , TAXES , PROFITS , AND
CONTIGENCIES

LIFE INSURANCE RATE COMPUTATION

► YEARLY RENEWALBLE TERM LIFE INSURANCE

► THE SINGLE PREMIUM PLAN
► THE LEVEL PREMIUM PLAN
► NET LEVEL PREMIUM CALCULATION
► NET AMOUNT AT RISK
► THE FLEXIBLE PREMIUM PLAN
► THE SAVINGS ASPECTS OF LIFE INSURANCE
► TRADITIONALLY CASH VALUE INSURANCE
► EXPERIENCE PARTICIPATION IN INSURANCE
► GURANTED COST , NON PARTICIPATING INSURANCE
► PARTICIPATING INSURANCE
► CURRENT ASSUMPTION INSURANCE

INTRACTION AMONG INSURANCE PRICING ELEMENTS

1. THE ASSET SHARE CALCULATION
 2. RELATION OF CASH SURRENDER VALUES ,
RESERVES AND ASSET SHARES

INNOVATIONS TO RECENT LIFE INSURANCE

PRODUCTS

► INSURANCE COMPANIES REACTIONS

► POTENTIALLY LOWER COST COVERAGE
► INTERMEINATE PREMIUM PLANS
► MORE REFINED CLASSIFICATION SYSTEMS
► PROVISIONS TO ENCOURAGE PERSISTENCY
► INCREASED FLEXIBILITY
► GREATER DISCLOSURE
► INCERASED RISK TO CONSUMERS

OVERVIEW OF TYPES OF LIFE INSURANCE POLICIES

1. TERM LIFE INSURANCE
2. ENDOWMENT INSURANCE
3. WHOLE LIFE INSURANCE